1 Answer
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To be able to receive emails from external servers, you need to have a working postfix. From your explanation, it seems that you can send emails locally.

The other important part that you did not talk about is configuring your DNS records and allowing the external servers to send you the emails. You need to define at least one MX record for your domain and point it to your email server. Also, the SMTP port 25 should be opened to your email server.

I was a bit unclear! I can send e-mail externally (i.e. to my Hotmail) and can also have it sent to me, there is no error connecting. I just do not know how to actually configure postfix to receive the mail into a folder or somewhere where I can use it, it just doesn't happen.
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John R.Dec 7 '10 at 8:16

Look at the log file /var/log/mail.log as lg suggested. You can check for errors.
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KhaledDec 7 '10 at 8:53

Wow ...... The log file is 7mbs full of errors and warnings from libmilter (was trying to set up DKIM). I will just reinstall the bloody vps, only had it for one day.. Thank you!
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John R.Dec 7 '10 at 9:00